Newsletter summary
Q1 in 2024, the company's revenue reached 77Greenbelinftgame50 billion yuan, an increase of 0.54%, and a loss reduction of 54.59%. Vehicle display business increased by more than 40% compared with the same period last year. The shipment volume of dint LTPS technology increased by more than 200% year on year. It is expected that AMOLED shipments will grow rapidly and Micro-LED production lines will achieve small batch shipments. The adjusted net profit forecast for 2024 is-510 million, which is upgraded to the "buy" rating. Risks include market competition, lower-than-expected demand and so on.
Text of news flash
With the fresh release of the first-quarter earnings report in 2024, the company recorded 7.75 billion yuan in revenue, a slight increase of 0.54% from the same period last year and 2.35% from the previous month. However, the net profit attributed to shareholders of listed companies was-301 million yuan. Despite losses, the year-on-year growth rate reached 54.59%, an increase of 2.16% from the previous month. Deducting non-net profit is-563 million yuan, an increase over the same period last year.Greenbelinftgame38.14%, up 31.76% from the previous month. Despite signs of improved profitability, the company is still losing money, but year-on-year and month-on-month growth suggests the company is getting back on track.
Revenue has grown steadily and performance has improved significantly. Thanks to the gradual recovery of the market industry, the company's main business profits continue to improve. The revenue of the vehicle display business increased by more than 40% compared with the same period last year, and the month-on-month increase of more than 10%. The shipments of vehicle display products have doubled compared with the same period last year. AMOLED flexible mobile phone display business revenue increased by 16% year-on-year and 10% month-on-month. End-customer demand for pick-up is positive, and production capacity is expected to be further released. The company's gross profit margin increased by 5.22 percentage points to 11.17%, and net profit increased by 4.67 percentage points to-3.92%. The expense rates of sales, management, R & D and financial expenses all changed compared with the same period last year.
Flexible OLED prices pick up, AMOLED shipments are expected to grow rapidly. The application and promotion of high-end technology and the release of production capacity, the structural growth trend of flexible AMOLED technology continues, the supply-side capacity layout of the industry has basically taken shape, and the new capacity is limited. Demand growth and new technology product development will promote capacity utilization, and it is expected that the tight capacity situation will continue. The company's AMOLED flexible mobile phone display products have achieved full coverage of domestic mainstream brands, enhanced customer stickiness and improved product specifications, and shipments are expected to grow rapidly in 2024 and enter more high-end flagship projects. The company's AMOLED flexible production line (TM17, TM18) is moving well, the downstream demand is strong, and the product price is repaired upward.
Vehicle LTPS technology penetration accelerated, Micro LED production capacity continued to release. Although the automobile market faces competition and price pressure, the growth of demand for new energy vehicles, the improvement of intelligent cockpit permeability and the increase of demand for new scenes promote the development of on-board display market. The penetration of LTPS technical specification products is accelerated, and the vehicle display business shows vitality. The company continues to optimize product technology solutions, promote LTPS technology penetration and product size upgrading, and enhance product value. The 8.6 generation line (TM19) and the new display module production line (TM20) will be mass produced step by step, and the Micro-LED production line is expected to achieve full-process penetration and small batch shipments. The company's on-board display business is based on modules with a high degree of customization, which will optimize product technology and specifications, improve the complexity and integration of product modules, and increase the proportion of high value-added products.
The profit forecast was raised and the rating was upgraded to "buy". There are structural opportunities in the global display market, such as the increase in market penetration of high-specification display technology and the growth of new applications such as new energy vehicles. As the leader of LTPS mobile phone panel and vehicle display, the company is expected to enhance its core competitiveness and profitability through capacity expansion, production line optimization and new product research and development. Combined with the quarterly data and profitability improvement, the profit forecast is raised in 2024 and lowered in 25-26 years. The net profit is expected to be-510 million yuan, 335 million yuan and 750 million yuan, EPS is-0.21 yuan, 0.14 yuan and 0.31 yuan, PE is 57X and 26X respectively. The rating was upgraded to "buy", looking forward to the company's long-term growth space.
Risk tips: vehicle business development, consumer electronics demand recovery and market competition risk. Exchange rate fluctuations may also have an impact on the company's business. While the performance is improving, market participants should pay attention to the relevant risk factors.